Jack Lew's Treasury Confirmation Just Started, And He's Already Got Three Demands On His Plate

The Senate Finance Committee just started Jack Lew's Treasury
Secretary confirmation hearing, and already he has clear
directives on his plate.

At the same time, anyone watching this hearing likely already has
a sense of how it's going to go. Republicans, Democrats, and Lew
laid out their positions pretty clearly in their opening
statements.

Lew was Obama's Chief of Staff, and a former budget director for
both the Obama and Clinton administrations. He also did a brief
stint at Citigroup and worked under former House Speaker Tip
O'Neil (remembered for working across the aisle with Ronald
Reagan to pass 1986's tough tax and budget reform).

Lew's expected to enter a Treasury Department focused on cleaning
up our current federal budget, rather than a national financial
crisis, and his prepared comments reflect that.

“We must put our nation back on a path of fiscal sustainability.
Over the past two years, we have locked in $2.5 trillion in
deficit reduction through spending cuts and revenue
increases...And we can do even more to shrink the deficit over
the next decade through a balanced mix of spending reductions and
tax reforms, and sensible reforms to Medicare that will help the
program stay sound in the future.”

Senator Max Bacchus (D-Mont.), in his opening remarks, added
three more vital tasks for Lew to focus on — jobs, tax reform,
and "creating...stability in Washington." Bipartisanship.

Senator Chuck
Schumer, introducing Lew and recommending him highly,
stressed Lew's ability to work across the aisle. Lew emphasized
it in his prepared remarks as well.

“In recent years, some have argued that Washington is irrevocably
broken. That our government cannot tackle the nation’s most
serious problems. That bipartisanship is a thing of the past. I
disagree,” Lew said. “I have seen and learned a lot. And I can
honestly say that the things that divide Washington right now are
not as insurmountable as they might look.”

On the other side the Republicans, first represented by Orrin
Hatch (R-Utah), are focusing on how Lew
wants to balance the budget, specifically on his views on raising
taxes.

"We need a better understanding ... of what kind of plan the
Obama administration has to confront our skyrocketing debt and
our broken entitlement programs," said Senator Orrin Hatch, the
top Republican on the finance panel

Additionally, and Hatch spent some time on this in his opening
remarks, the Republicans are scrutinizing Lew's stint at
Citigroup and how that will influence his implementation of Wall
Street regulatory legislation, the Volcker
Rule and Dodd-Frank.

Lew made $2.65 million at Citigroup in 2007 and 2008. He started
in 2006 as COO of the bank's global wealth management division.

All that said, no one really expects Lew to get the same grilling
Chuck Hegel got during his confirmation process for Defence
Secretary. The Senate will, however, be giving Lew additional
questions that he will have a week to answer. He won't be
confirmed before that.